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Socialist patrimonialism and the global economy: the case of Romania

Published online by Cambridge University Press:  22 May 2009

Ronald H. Linden
Affiliation:
Assistant Professor of Political Science and Director of the Center for Russian and East European Studies at the University of Pittsburgh, Pennsylvania.
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Abstract

The evolution in Romania of a governing system of socialist patrimonialism, as opposed to one of collective rule by counterbalancing elites, accounts for both the country's early and extensive contact with the international capitalist economy and its belated but sharp reaction to international economic disruptions. In the absence of powerful alternative political elites or policies, the socialist nationalist ideology of Nicolae Ceausescu defined the country's “multilateral development” and its deviant foreign policy. Ceausescu's manipulation of the system strengthened his hold during the time of rapid economic development and undermined the country's capacity to react promptly or moderately to economic shocks. Events in Poland, especially the rise of Solidarity, complicated Romanian adjustment; but on balance, the adjustment to external economic forces reinforced rather than eroded Ceausescu's socialist patrimonialism.

Type
3. Economic Strategy inside the CMEA
Copyright
Copyright © The IO Foundation 1986

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References

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31. Economist, 24 April 1982; Financial Times, 8 December 1982, p. 14; a second agreement was also reached covering 1983 obligations. See Financial Times, 7 February 1983.

32. “Statement on the Stand of the Rumanian Workers’ Party Concerning the Problems of the International Communist and Working Class Movement” (April 1964), text in Griffith, William E., Sino-Soviet Relations: 1964–65 (Cambridge: MIT Press, 1970), pp. 269–96, quote is from p. 282Google Scholar. See the discussion in Montias, , Economic Development, pp. 187230Google Scholar.

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36. See Ceausescu's speeches of 29 November 1968 and 7 February 1969, both in Romania on the Way of Completing Socialist Construction, vol. 3 (Bucharest: Meridane, 1969), pp. 682–83, and 826Google Scholar. See also Ecobescu, Nicolai and Sergiu Celac, Politico externa a României Socialiste (Bucharest: Editura Politicǎ, 1975)Google Scholar.

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38. For the Romanian attitude toward Czechoslovakia and other WTO-coordinated positions, see Linden, , Bear and Foxes, pp. 53ffGoogle Scholar. For a list of WTO maneuvers, see Jones, Christopher D., Soviet Influence in Eastern Europe (New York: Praeger, 1981), pp. 301–8Google Scholar. Romanian defense expenditures as a percentage of GNP were the lowest in Eastern Europe for 1970–73; see Alton, Thad P. et al. , “Military Expenditures in Eastern Europe: Some Alternative Estimates,” in Joint Economic Committee, Reorientation and Commercial Relations of the Economies of Eastern Europe, 93d Cong., 2d sess., 1974, pp. 502–3Google Scholar.

39. See Ceausescu's speech to the 1972 National Party Conference, in Romania on the Way of Building up the Multilaterally Developed Socialist Society, vol. 7 (Bucharest: Meridane, 1973), pp. 519–20Google Scholar.

40. Data in Montias, , “Romania's Foreign Trade,” pp. 872, 882–85Google Scholar.

41. Data from Jackson, Marvin R., “Romania's Economy at the End of the 1970s: Turning the Comer on Intensive Development,” in Joint Economic Committee, East European Economic Assessment, pt. 1, Country Studies, 1980, 97th Cong., 1st sess., 1981, p. 272Google Scholar; years compared are 1970 and 1975.

42. Figure for Romania is from Jackson, , “Industrialization, Trade and Mobilization,” p. 922Google Scholar; for the other states (figures are 1975) see CIA, Energy Supplies, p. 11Google Scholar. Excluding Poland, the figure for the other East European states is 50%.

43. Marer, , “Economic Performance, Strategy and Prospects,” pp. 540–44Google Scholar; Jackson, , “Romania's Economy,” p. 287Google Scholar.

44. See data in Jackson, , “Perspectives on Romania's Economic Development,” pp. 256–57Google Scholar.

45. New York Times, 27 November 1977, pp. 1, 3; RFER, 12 August 1977, 26 October 1977.

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47. Ibid., p. 51; see also the discussion in Nelson, , “Workers in a Workers’ State,” pp. 174–91Google Scholar.

48. See Fischer, Mary Ellen, “Nicolae Ceausescu and the Romanian Political Leadership: Nationalization and Personalization of Power,” Moseley, Edwin M. Faculty Research Lecture, Skidmore College, 1982, p. 34Google Scholar.

49. România Liberǎ, 30 October 1981, p. 2; Scînteia, 3 December 1981, pp. 1, 2.

50. See, for example, Ceausescu's speech at the Congress of Working People's Councils, Scînteia, 13 09 1980, pp. 12Google Scholar.

51. See, for example, Ceausescu's speech at Brasov, in România pe Drumul Construirii Societǎtii Socialiste Multilateral Dezvoltate, vol. 21 (Bucharest: Editura Politicǎ, 1981), pp. 307–27Google Scholar.

52. See Scînteia, 17 October 1980, p. 2; Bucharest Domestic Service, 26 October 1980; Scinteia, 18 December 1980, pp. 1, 3. See also the Twelfth Congress speeches of Ilie Verdet (prime minister), Cornel Burtica (minister of foreign trade), and Paul Niculescu (minister of finance), all of whom subsequently lost their jobs, in Scînteia, 21–23 November 1979.

53. Scînteia, 1 November 1980, p. 3; 19 December 1980, p. 7, and România Liberǎ, 17 December 1981, pp. 1, 2.

54. România Liberǎ, 15 February 1982, pp. 1–3.

55. Scînteia, 9 February 1982, p. 1.

56. RFER, 19 March 1979; see also Gilberg, Trond, “Modernization, Human Rights and Nationalism: The Case of Romania,” in Klein, George and Reban, Milan, eds., The Politics of Ethnicity in Eastern Europe (Boulder: East European Quarterly, 1981; distributed by Columbia University Press, New York), pp. 204–6Google Scholar.

57. In 1980 Karoly Kiraly published a second letter updating the regime's policy toward the Hungarian minority; see RFER, 22 July 1980.

58. For all figures, compare the Twelfth Party Congress directives given in Congresul al XII-lea Partidul Comunist Român (Bucharest: Editura Politicǎ, 1981), pp. 690–91Google Scholar, with the plan as finally adopted (România Liberǎ, 2 July 1981, pp. 1–4. The congress directives did not specify an agricultural share of overall investment, but Ceausescu's report indicated that of 1300–1350 billion lei to be invested, approximately 155 billion lei (or 11.7%) would be devoted to agriculture (Congresul al XII-lea, pp. 36–40). The plan as adopted put the agricultural share at 12.9% (România Liberǎ, 2 July 1981, p. 3). The Twelfth Congress adopted several special programs on development to 1990, including one on energy (Congresul al XII-lea, pp. 767–86).

59. See Scînteia, 25 and 26 November 1978, and Ceausescu's speeches of 27 and 29 November 1978 [Agerpress, same dates]. On the arms race, see Ceausescu's message to both Soviet President Brezhnev and U.S. President Reagan urging the elimination of medium-range missiles from Europe, , in Scînteia, 4 12 1981, p. 1Google Scholar, and the reports of a huge peace and disarmament rally in Bucharest, , Scînteia, 6 12 1981, pp. 14Google Scholar.

60. Wharton Foreign Trade Data Bank, and Wharton, , “Romanian External Financial Situation at the End of 1981,” Centrally Planned Economies: Current Analysis, 1 03 1982, p. 5Google Scholar.

61. Wharton, , “Romania's Economy at Mid-1982 and Outlook for the Rest of 1982,” Centrally Planned Economies: Current Analysis, no. 90, 11 1982, p. 3Google Scholar, and Anuarul Statistic, 1980, p. 523.

62. See Prime Minister Ilie Verdet's speech at the thirty-fifth session of the CMEA Council, România Liberǎ, 7 07 1981, p. 5Google Scholar; see also Agerpress, 30 July 1981 [FBIS, 31 July 1981, pp. AA1–2].

63. Wharton, , “Romanian Foreign Trade,” p. 5Google Scholar; RFER, 28 September 1984.

64. See Scînteia, 8 July 1981 [FBIS, 13 July 1981, p. H3] and 23 September 1981 [FBIS, 24 September 1981, p. H8]. The Romanians also began promoting the idea of an international agreement to establish ceilings on interest rates, with developing countries receiving preferential rates; see Agerpress, 19 May 1982.

65. Financial Times, 8 December 1982, p. 14; Wall Street Journal, 4 January 1983, p. 33; Financial Times, 7 February 1983.

66. Financial Times, 24 June 1982; East European Markets, 25 January 1982, p. 2, and 31 May 1982, p. 8.

67. Kanet, Roger, “Patterns of Eastern European Economic Involvement in the Third World,” in Radu, Michael, ed., Eastern Europe and the Third World (New York: Praeger, 1981), pp. 312–14, 330Google Scholar.

68. Barac, Ion, “Romania and the Developing Countries,” Revue roumanie d'études internationales 11, no. 1 (1977), p. 72Google Scholar. See also Ion Mielcioiu, “The Colombo Conference of the Heads of State of the Non-Aligned Countries, Romania's Participation,” ibid., pp. 73–88.

69. Scînteia, 25 and 26 November 1978; Agerpress, 27 and 29 November 1978.

70. Reisinger, William M., “East European Military Expenditures in the 1970s: Collective Good or Bargaining Offer,” International Organization 37 (Winter 1983), p. 147Google Scholar; Alexiev, Alex, Romania and the Warsaw Pact: The Defense Policy of a Reluctant Ally, Rand Paper Series, No. P-6270 (Santa Monica: Rand, 1979), pp. 1012Google Scholar.

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72. The IMF conditions reportedly involved adjustments of prices and interest rates, reduction of investment, and the release of more complete information, Financial Times, 23 and 24 June 1982; Romania also borrowed $32.5 million from the World Bank in fiscal 1981–82, East European Markets, 31 May 1982, p. 8.

73. For the Romanian statement at Berlin, see Agerpress, 29 June 1976 [FBIS, 30 June 1976, pp. CC8–17]. the Romanian point of view on the Paris conference can be seen in “Solidaritatea si unitatea tuturor fortelor democratice, progresiste—imperativ fundamental al epoch’ contemproane,” Era Socialistǎ, 5 May 1980, pp. 1–3; cf. Pamfil Nichitelea, “Independenta nationals Si socialismului, un tot organic,” ibid., pp. 4–7. See also RFER, May 13 1980.

74. Carrillo was invited to Bucharest in August 1977 at a time when he was the subject of harsh attacks from the Communist party of the Soviet Union (RFER, 4–11 August 1977). He visited Bucharest again in August 1978 (Scînteia, 29 August 1978), in November 1979, for the Twelfth Party Congress (Bucharest D.S., 11 November 1979), and in April 1982 (Agerpress, 10 April 1982 [FBIS, 12 April 1982, p. H4]).

75. See Romania's, statement on the desirability of a “new international security order” in Lumea, 23–29 04 1982, pp. 1415Google Scholar, and Lumea, 30 April–6 May 1982, pp. 8–9.

76. See, for example, Ceausescu's mildly favorable reaction to the Reagan “zero-option” proposals regarding European-based nuclear weapons (Scînteia, 22 November 1981, p. 1). Unlike its allies, Romania supported the Camp David peace framework (Scînteia, 22 September 1978) and the peace treaty that eventually emerged between Egypt and Israel (Scînteia, 15 March 1979).

77. Scînteia, 20 February 1979.

78. Scînteia, 3 January 1980, p. 1, and 4 January 1980, p. 4.

79. Radu, Michael, “Romania and the Third World: The Dilemmas of a ‘Free Rider‘,” in Radu, Michael, ed., Eastern Europe and the Third World (New York: Praeger, 1981), pp. 246–48Google Scholar.

80. Fischer, , “Nicolae Ceausescu and the Romanian Political Leadership,” p. 30Google Scholar.

81. Ceausescu's speech to the 1972 National Party Conference, in Romania on the Way of Building up the Multilaterally Developed Socialist Society, vol. 7, p. 505Google Scholar.

82. See Fischer-Galati, Stephen, The New Rumania (Cambridge: MIT Press, 1967), pp. 4478Google Scholar.

83. On this point see Fischer, , “Nicolae Ceausescu and the Romanian Political Leadership,” p. 42Google Scholar. In the fall of 1981 disturbances were again reported in the Jiu Valley; reportedly, when Ceausescu tried to visit the area his helicopter was stoned (BBC, 13 November 1981; Financial Times, 17 November 1981).

84. For other discussions of possible opposition, see Nelson, Democratic Centralism, and Jowitt, “Political Innovation.”

85. Scînteia, 17 October 1980, p. 3; Scîntea, 22 September 1981 [FBIS, 24 September 1981, pp. H1–H3].

86. Scînteia, 5 November 1980, p. 6, and 26 December 1981, p. 6.

87. Bucharest Domestic Service, 26 September 1980 [FBIS, 30 September 1980, p. H6]; România Liberǎ, 18 October 1980, p. 3.

88. Christian Science Monitor, 10 February 1982, p. 9; Vjesnik (Zagreb), 2 11 1982Google ScholarPubMed; Financial Times, 7 June 1984; on quotas for private production, see Scînteia, 19 January 1984, pp. 2–3.

89. Reuters News Service, 3 November 1982; RFER, 12 November 1982.

90. Scînteia, 2 July 1983, pp. 1–2, and 7 September 1983, pp. 1, 5.